Currently, the national reserves stand at USD 499 million: MMA

30 Nov 2022 | 14:58

Maldives Monetary Authority (MMA) stated that the state's total reserves currently stand at USD 499 million and the reserves are falling so much because of the high cost of fuel. 

MMA made the statement at a time when global oil prices are on the rise and the cost of living is also increasing due to the cost of fuel. 

The country's reserves stood at USD 540 million in September which is almost MVR 40 million less than in previous months. Therefore, this is the lowest decline in Maldives reserves in the past 21 months. 

According to the budget book, the reserve will be USD 606.3 million next year.  However, this is USD 32 million lower compared to this year's reserve forecast. The budget book estimates reserve at USD 638 million by the end of the year. Maldives reserve stood at USD 805 million at the end of last year. The reserve of country's reserves stood at $985 million.

MMA stated that country's reserves have been depleting since the middle of the year. 

The higher global oil prices, the more likely it is to impact the reserve in the near future

According to research 

The nation's reserves increased in March of this year. The Maldives' reserves for the month totaled USD 865 million. The nation's reserves have decreased by USD 366 million since that month. That represents a decrease of nearly 45 percent.

In addition to the state's total reserves, the amount in usable reserves is also declining from one month to the next. The reserves stood at $184 million at the end of September.

While the useable reserves' specifics were previously made public, the MMA has yet to do the same. The amount that remains after short-term external liabilities are paid from the official reserve is known as the useable reserve. Usable reserves are the sum of money that is immediately ready for use in different foreign exchange operations.

President Ibrahim Mohamed Solih's administration has pledged to increase the reserve by USD 1 billion by the end of the 5-year term. However, President Solih's administration has been unable to increase the reserve